ACRE swings to Q2 2026 profit with $4.4M GAAP net income, declares $0.15 dividend
ACRE is trading near its 52-week low of $4.05 (5.9% above the low) on elevated volume (2.7× avg).
Summary
Ares Commercial Real Estate Corp posted Q2 2026 net income of $4.4 million and Distributable Earnings of $6.9 million, declared a $0.15 dividend, and highlighted progress in reducing office loan exposure.
Key Events · Earnings and Guidance · ACRE
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Q2 2026 Net Income of $4.4M
GAAP net income reached $4.4 million, or $0.08 per diluted share, a sharp turnaround from the $9.6 million loss recorded in Q1 2026.
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Distributable Earnings of $6.9M
Non-GAAP Distributable Earnings came in at $6.9 million, or $0.12 per share, covering only a portion of the $0.15 quarterly dividend.
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Dividend Declared at $0.15
The board declared a third-quarter 2026 dividend of $0.15 per share, maintaining the payout even though earnings do not fully cover it.
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CECL Reserve at $139M
The current expected credit loss reserve stands at $139 million, representing 8% of loans held for investment and concentrated in risk-rated 4 and 5 loans.
Analysis · ACRE · Real Estate & Construction
A return to profitability marks Ares Commercial Real Estate's second quarter of 2026, with GAAP net income reaching $4.4 million, or $0.08 per share, reversing a prior-quarter loss. Distributable Earnings—a critical gauge of dividend coverage—totaled $6.9 million, or $0.12 per share, providing only partial cover for the $0.15 dividend. The company continues to manage its risk-rated 4 and 5 loans, and a $139 million CECL reserve still weighs on book value. While $130 million in new loan commitments signals ongoing portfolio repositioning, the dividend remains vulnerable unless earnings rebuild further.
At the time of this filing, ACRE was trading at $4.29 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $235.8M. The 52-week trading range was $4.05 to $5.89. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.